UCO Bank FY26 Report Reveals Governance Gaps From Director Vacancies

UCO Bank has filed its Annual Secretarial Compliance Report for the financial year ended March 31, 2026. The report details the bank's ongoing efforts to comply with SEBI regulations but points to significant governance issues, particularly concerning the composition of its Board of Directors and Audit Committee. These problems stem from existing director vacancies.

Maintaining SEBI's Listing Obligations and Disclosure Requirements (LODR) is vital for investor trust and regulatory standing, especially for a public sector bank like UCO Bank. Gaps in board and committee makeup can signal underlying governance weaknesses and attract scrutiny from regulators.

This report comes after UCO Bank was released from the Reserve Bank of India's (RBI) Prompt Corrective Action (PCA) framework in January 2024, having previously been placed under it due to performance issues. The bank also dealt with a ₹1,000 crore fraud case in 2020 linked to unauthorized remittances, which highlighted past challenges with internal controls.

The report identifies several specific compliance failures. Since December 25, 2025, the bank has not met the requirement for at least one Independent Woman Director on its Board due to a vacancy. Furthermore, for FY 2025-26, the Audit Committee did not meet SEBI LODR rules because two-thirds of its members were not independent directors.

UCO Bank is actively collaborating with the Government of India's Department of Financial Services (DFS) to fill these vacant director positions. The aim is to rectify the non-compliance with SEBI's composition rules and strengthen governance.

Investors will be watching for the timely appointment of Independent Directors to both the Board and the Audit Committee. Confirmation of full SEBI LODR compliance following these appointments will be key. Any further directives from SEBI or the RBI will also be important indicators, as will UCO Bank's continued financial performance after its exit from the PCA framework.